Palladium: The Mystery Precious Metal

Palladium: The Mystery Precious Metal

Palladium is a precious metal that is approximately thirty times rarer than gold. It is a naturally white metal that has a luster similar to the better known dear metal platinum. It is a member of the platinum group metals ( PGM ), a group which also includes platinum, osmium, rhodium, ruthenium, and iridium. Though palladium shouldn't be confused with platinum, another member of the platinum metals group.

Palladium is also recycled from ditched catalytic converters. Over fifty percent of the available supply of Palladium is utilized in the production of catalytic converters, which convert much of car exhaust into less threatening substances.

This began in 1939 when its sister metal platinum was reserved for army use. One advantage of palladium for jewelers was that palladium was lighter than platinum so larger jewelry pieces could still be worn comfortably. And with palladium being a particularly malleable metal, stone setting was a straightforward process. But production of palladium jewelry was mostly dropped after World War II when platinum was was once more allowed to be utilized in the jewellery trade. Its drawbacks as a jewelry metal were that the color can become dull over time, and that it does not polish as well as platinum.

In addition to the above uses of palladium in commercial goods, it is also used in dentistry and drugs, groundwater treatment, and hydrogen purification. Palladium is also utilized in fuel cells, which mix hydrogen and oxygen to make electricity, water, and heat. These relatively contemporary industrial uses have caused palladium's value to skyrocket in recent years. The price , however , has fallen dramatically since last spring, because of the deceleration in the auto industry, reducing demand for palladium employed in catalytic converters.

similar to the current situation of silver, palladium's extensive use in industry coupled with its limited supply make palladium an intriguing investment opportunity. However, the continued unstableness in the vehicle industry and the possible eminence of alternative energies in tomorrow's automobiles, the future of palladium is uncertain. So even though I own a number of rare palladium coins as a part of my numismatic collection, I do not plan to buy any palladium bars or palladium coin bullion for the moment. Short term traders, however, may gain advantage from the present low prices if a vehicle industry rescue package causes palladium prices to rise.